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Fact Sheets

The Employee Free Choice Act Legislation that will truly make a difference for Wal-Mart workers

Wage & Hour Issues Read how Wal-Mart continually fails to pay every worker for every hour worked

Health Care Wal-Mart's still insures barely over half its employees on the company plan

Always Low Wages Poverty-level wages make life extremely difficult for Wal-Mart's 1.4 million workers

The Environment How Wal-Mart's business model is detrimental for our planet

What Are the True Intentions of the Bank of Wal-Mart?

In today’s tesimony to the FDIC, Wal-Mart resident of Wal-Mart Financial Services Jane J. Thompson said:

“The purpose of the proposed bank would be to sponsor credit card, debit card and electronic check transactions – nothing more.”

But Wal-Mart’s record says otherwise.

In past statements Wal-Mart Has shown repeated interest in opening commercial banks:

CEO Lee Scott on Financial Services. In response to a question about additions to Wal-Mart services and products, CEO Lee Scott said: “Well, I think financial services is one we would like to be in. We’re already offering money orders. We’ve dramatically lowered the costs of wiring money. There’s probably a place for us in mortgages. I think the dot-com is going to be a very powerful tool.” [Q&A With Lee Scott, LA Times, 11/23/03]
CEO Lee Scott on Wal-Mart’s Ambitious Growth. When asked How big Wal-Mart could be, Scott said: “We are 8% of the nonautomotive, nonrestaurant sales in the U.S. I’m not sure why it couldn’t be 24%. We’ve really done a great job for our customers, lowering prices, lowering the cost of living, raising the standard of living. Is it really unhealthy for us to be 32%? Could we be four times bigger right here? I don’t know why not.” [Q&A With Lee Scott, Los Angeles Times, 11/23/03]

Besides past statements, Wal-Mart has tried repeatedly to aquire a consumer bank:

“In 1999, Wal-Mart filed an application with the Office of Thrift Supervision to acquire Federal BankCentre, a savings and loan in Broken Arrow, Oklahoma.” [New York Times, “Wal-Mart Is Seeking Approval to Buy a California Bank,” 05/16/2002]
“In 2001, Wal-Mart tried to establish a partnership with TD Banks USA, but the Office of Thrift Supervision rejected the proposal, saying it would combine commerce and banking.” [Capital Times, “Will Wal-Mart someday own a bank?” 07/09/2005]
Wal-Mart tried to acquire Franklin Bank of California in April 2002. Wal-Mart claimed it wanted a banking license to “lower its processing costs for certain transactions.” The California Legislature passed a law preventing the purchase. [New York Times, “Wal-Mart Is Seeking Approval to Buy a California Bank,” 05/16/2002]
In 2003, “Wal-Mart announced a joint venture with a division of Toronto Dominion Bank to offer banking services in as many as 100 Wal-Mart stores. That plan…was rejected by regulators, who were concerned that Wal-Mart would effectively have control of the Toronto Dominion division. [New York Times, “Wal-Mart Is Seeking Approval to Buy a California Bank,” 05/16/2002]

Click here to read more of Wal-Mart’s testimony to the FDIC.

Posted by Russ Fagaly on Monday, April 10, 2006

Click Here for a Printer-Friendly Version

COMMENTS

Walmart is the root of all evil in America. the last thing they need is a bank.

Vinnie in Wisconsin
Monday, April 10 at 01:28 PM

I don’t think Wal-Mart is the root of all evil, but they do have a lot of problems. It’s companies like WMW that are trying to fix them!

Hobo in Yolo, CA
Monday, April 10 at 04:22 PM

Wal-Mart can’t be trusted for the good of the nation.
They helped export our jobs. What will they do for us next holding our money?

JM in USA
Monday, April 10 at 05:27 PM

Why don’t you wmw idiots just shut up, if you can say something that makes some sense.....

k in south
Monday, April 10 at 08:21 PM

One thing people need to remember is that the main purpose of any store, no matter how big or small, is to make a profit to survive. Now, combine that with suits who only seem to care about money and you have got a big problem, which is exactly what Wal-mart has become. Giving them the power to handle people’s profits is a grave mistake.

Latrina in
Tuesday, April 11 at 06:57 AM

Talk about intentions.

This site puts on the mask of helping WM associates get a better life when in reality the goal is 100% unionization or descrutcion of WM.

What are WMW’s true intentions? Makes you think.

Harold in Dallas
Tuesday, April 11 at 08:16 AM

Wonders…

I wouldn’t get too complacent if I were you! THIS is far from over.

Let’s see now...George “W’s” poll numbers continue to drop, we have millions of people in the streets marching because of this country’s immigration policies, the price of gas is expected to top $3.00 this summer (and it’s only headed a lot higher than that), Our country’s military forces are getting increasingly trapped in a civil war in Iraq, many of the islamic countries in the Middle East, like Jordan, Egypt, and Saudi Arabia are showing signs of slowing their “march toward” more “democracy” and are willing to “wait out” the Bush Administration and we STILL haven’t been able to find Osama bin Laden.

While OBL’s tactics may be deplorable, maybe he IS RIGHT about “The Great Satan.” The Republican’s are starting to get their asses kicked every way they turn. While it may not be a panic situation yet, some are beginning to either break ranks with the party or jump ship to save their sorry politcal asses.

ScrewedbyGeorgeBush in Anytown, USA
Tuesday, April 11 at 08:25 AM

As I have opined before, WM would be better to establish an Employee Credit Union that would benifit members in house with low interest loans, checking and savings accounts, earn dividends on those accounts, process charges, etc. It would be “having your cake and eating it too” but with more accountability to the members of said institution.

IBM(Think Credit Union) is a prime example of a Credit Union that works best for the member and for the community it helps.

Kathy in Minnesota
Tuesday, April 11 at 10:33 AM

Generic and Alex

I apologize for this not being in topic, but I was unable to get it in before it disappeared.

I would like for you to examine the names NAFTA and CAFTA. The “FT” means “Free Trade”. The purpose of the treaties is to expedite trade across borders. Practically by definition this will work against unions. Anytime you put in restrictions on how much an employee is to be paid, it works against free trade. It will result in high wages/high high profits for the organization in the country with the lower standard of living. It causes inflation and those people who do not work in the international trade sector will suffer. It favors large companies and corporations because they have the knowledge and resources to work across international borders. In addition it will favor large organizations with lower prices. Both of those are contrary to unions.

Again I say, unions need to learn to live with an international economy or you will become a relic of the past, which you are doing already.

Paul flying in LA
Tuesday, April 11 at 11:18 AM

Gee Paul...are you bored again? It must be tough trying to pass the time between connecting flights while you sip your latte at the airport.

You ever wonder why nobody takes you serious? Get real and engage your brain before you open your laptop.

You’ve used at least 3 different “aliases” here:
Paul having fun in MS
Friday, April 07 at 08:02 PM

Paul moving in MS
Saturday, April 08 at 08:52 PM

Paul Hotspotin in LA
Sunday, April 09 at 09:41 PM

You made the statement: “I just do this for entertainment.” If it’s entertainment you’re looking for, try http://disney.go.com

ScrewedbyWal-Mart in Anytown, USA
Tuesday, April 11 at 12:40 PM

Tom-

What’s the point of your last post? Why are you so desperate to get Wal-Mart apologists to leave this site?

(Are you) S(cared,) S(crewed?) in USA
Tuesday, April 11 at 03:30 PM

JM: Wal-Mart has helped export no jobs. They have been very good for the employment situation in the United States. They hire far many more American workers than they fire.

cared in U.S.A
Thursday, April 13 at 07:30 AM

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